Note 2 - Net Income Per Share

9 Months Ended

Sep. 30, 2016

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding, while diluted net income per share is computed by dividing net income attributable to common shareholders by the sum of the weighted average number of common shares outstanding and all dilutive potential common shares outstanding. Dilutive potential common shares relate to our stock-based compensation arrangements and our outstanding convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive is based on net income from continuing operations.

The calculation of the basic and diluted net income per share was as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per-share amounts)	2016		2015		2016		2015
Net income from continuing operations:
Net income from continuing operations - basic	$	82,803	$	70,091	$	247,164	$	207,011
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	848		3,714		5,151		11,094
Net income from continuing operations - diluted	$	83,651	$	73,805	$	252,315	$	218,105

Net income:
Net income from continuing operations - basic	$	82,803	$	70,091	$	247,164	$	207,011
Income (loss) from discontinued operations, net of tax	—		—		—		5,385
Net income - basic	82,803		70,091		247,164		212,396
Adjustment for dilutive Convertible Senior Notes due 2019, net of tax (1)	848		3,714		5,151		11,094
Net income - diluted	$	83,651	$	73,805	$	252,315	$	223,490

Average common shares outstanding - basic	214,387		207,938		210,858		197,562
Dilutive effect of Convertible Senior Notes due 2017 (2)	178		1,798		71		8,620
Dilutive effect of Convertible Senior Notes due 2019	8,274		37,736		16,897		37,736
Dilutive effect of stock-based compensation arrangements (2)	3,129		3,323		2,846		3,075
Adjusted average common shares outstanding - diluted	225,968		250,795		230,672		246,993

Net income per share:

Basic:
Net income from continuing operations	$	0.39	$	0.34	$	1.17	$	1.05
Income (loss) from discontinued operations, net of tax	—		—		—		0.03
Net income	$	0.39	$	0.34	$	1.17	$	1.08

Diluted:
Net income from continuing operations	$	0.37	$	0.29	$	1.09	$	0.88
Income (loss) from discontinued operations, net of tax	—		—		—		0.02
Net income	$	0.37	$	0.29	$	1.09	$	0.90

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(1)	As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would result from the assumed conversion.


(2)	The following number of shares of our common stock equivalents issued under our stock-based compensation arrangements and convertible debt were not included in the calculation of diluted net income per share because they were anti-dilutive:



	Three Months Ended September 30,		Nine Months Ended September 30,
(in thousands)	2016	2015	2016	2015
Shares of common stock equivalents	1,045	469	1,045	730
Shares of Convertible Senior Notes due 2017	—	—	1,902	—